I'm looking for an easy, efficient, and economical solution for accounting. We opened an online retail store on Shopify about 6 months ago, and we have no current accounting system in place. We want a system that will hold data in a clear, simple way; and we also want to sync our data b/w Shopify and the accounting program. I have been investigating online for the best solution, but I've never owned/managed accounting programs, so I am not sure of what exact specifications I need. We have mac books, so that is also important in the search.
A question: We have around 40 products (some of those have different variations), and we expect to grow. I've been under the assumption that I need an accounting program with inventory managing/tracking. Is that true?
I have read quite a few reviews and discussions on many accounting programs, and for a mac, it seems like there are limited options. If I need one that has inventory tracking, that also seems to limit the search. I know there are many apps that can be added onto existing accounting programs to add the inventory tracking feature, but my goal is to keep cost down.
Currently, one of the most recommended programs for my search has been Accountedge Pro. They do have inventory tracking, and They also have a Shopify connector to sync accounts. The program is $400, and the app is around $15 monthly. Other than the program being very outdated in its appearance, it seems to be sufficient. I did download it and had it as a trial.
Does anyone have a more economical solution? We do lean away from cloud solutions, but if there's one that seems to be excellent, I'd consider that. I appreciate the help in advance.
My name is Zack, and I'm a Support Guru here at Shopify.
I read your post and the first thing that came to mind was, "I wonder if they've heard of Quickbooks Online (OR the Hardware version)?"
The reason being that Shopify has a few different applications that synchronize with both Quickbooks Online, as well as Quickbooks Pro, Premier, and Enterprise, which are hard versions (i.e. not cloud-based) of the Quickbooks accounting platform.
HERE is a link to the general Quickbooks Online page, and HERE is a link to the Shopify-made App that synchronizes with Quickbooks Online. This is a great solution for setting up accounting on your store because Quickbooks also does Inventory Tracking.
However, you don't necessarily need to do inventory tracking through Quickbooks if you have the inventory for your products set up on Shopify, and you find that the inventory management suite on Shopify is adequate (here's a screenshot that shows you how to access this suite).
If you want to give Shopify Support a call, or open up a live chat, we can be reached 24/7 through our Support Page! Don't hesitate to get in touch with us :D
All the Best,
- Zack L
There are 2 main accounting tools that are very popular among Shopify store owners. First is, QuickBooks Online (As mentioned by Zack in the above comment). The other tool which is equally famous is Xero. But if you want to know more about these 2 and other accounting tools, this post on "Top 7 features eCommerce businesses should look for when choosing a cloud accounting tool" should help you.
To sync the data between your Shopify store and accounting tool, Here is the link to top ranked eCommerce-accounting integration app in Shopify app store. Apart from doing the basic functions like syncing Customers, Orders, Products, it also tracks inventory, track payment fee and supports refunds on your orders.
Do let me know if you have any specific question related to accounting tool or the integration solution.
Zachary, Please do not misguide the community. The link you shared is of eCC integration with QuickBooks Desktop (third party app) and not 'Shopify-made',
Neel, you have a common and valid question on deciding on the right accounting system. I strongly recommend choosing between Xero & QuickBooks Online. We work with 1200+ Shopify stores and have heard great things about the two - industry numbers also say they are the top 2.
Here's a head-to-head comparison between QuickBooks Online & Xero for your eCommerce business. I looked at features critical to you like inventory tracking, invoicing, bank reconciliation, reporting etc.
Once you choose between the two, would be great if you checkout our app - ZapStitch integration between Shopify and both the apps. We are the No 1 ranked and top 5 star rated integration app. Got questions? Mail me tejaswi at zapstitch dot com and I will do everything in my power to help you.
You can use several solutions based on which accounting offerring you have:
I can't say enough good things about Xero. I have been using their accounting system to run my own business for over 4 years and it is amazing. If you are running a real business you want a complete double entry accounting system. Out of all the ones mentioned here only Xero and QBO do that.
The integration ZapStitch supplies seems to cover your syncing needs.
As far as what you should or should not track in your accouting system I would ask your professional accountant. If you do have one do that first.
Well thats exciting Thea, also XERO know nothing about it!
We are in a similar position as the OP and have been operating our accouting system from a spreadsheet for a few years. We have just started looking at accounting apps and had narrowed it down to Xero or QB and then notoced that shopify had released a free app for QB making it much more attractive, effectively half the price of Xero (Xero cost plus app cost)
I contacted Xero and they only put me on to the paid app, just yesterday. This now makes both systems more interesting.
Off to isntall the xero app as have signed up for the QB trial yet.
But to the OP both Xero and QB offer 30 day free trials, so give them a try and see which one works best for you. Take into account customer service as well.
And then i was disappointed. The Xero app doesnt seem to work with UK accounts. Theis accounting software certainyl isnt easy to get to grips with.
So how do people get round the fact that an invoice is created for your sale, you mark as payment received but then your payment comes from your gateway provider so you effectively receive the payment twice?
When used with Shopify the invoice is just there for your accounting purposes. The invoice is not used to accept payment.
Lets look an an example. A customer is on your store and makes an order for $50. Your gateway charges the customer's card and will be sending you the funds in a few days to your bank account. In Xero an invoice is created for $50 and is marked as paid. When the invoice was created it generated a journal entry for lets say a debt to your bank Cash account and a credit to a revenue account like Sales.
At this point in Xero this transaction is unreconciled.
A few days later the $50 land in your bank account. Xero will then pull in this transaction through an automatic bank statement import. Now you will see an unreconciled account transaction and an unreconciled bank transaction for $50. In Xero you reconcile them as the same transaction so your bank and your books will be up to date.
While invoices in Xero can be used to accept payment via a gateway integration their main purpose in this setting is to log the transaction so you can account for it.
Right you are, Tejaswi! I had been swimming in Quickbooks links and accidentally posted the wrong one. Here is the link to the Quickbooks integration app developed by Shopify: